Osisko Reports Q3 2024 Results
MONTRÉAL, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the "Company" or "Osisko") (OR: TSX & NYSE) today announced its consolidated financial results for the third quarter of 2024. Amounts presented are in Canadian dollars, except where otherwise noted.
Highlights
18,408 gold equivalent ounces ("GEOs1") earned (23,292 GEOs in Q3 20232);
Revenues from royalties and streams of $57.3 million ($62.1 million in Q3 2023), exclusive of 1,595 GEOs earned but not sold due to quarter-end timing;
Cash flows generated by operating activities of $47.2 million ($43.5 million in Q3 2023);
Quarterly cash margin3 of 55.1 million or 96.3%;
Net earnings of $18.3 million, $0.10 per basic share (net loss of $20.0 million, $0.11 per basic share in Q3 2023);
Adjusted earnings4 of $28.8 million, $0.15 per basic share ($18.3 million, $0.10 per basic share in Q3 2023);
Repayment of $27.3 million under the revolving credit facility (and repayment of $115.2 million year-to-date in 2024);
Cash balance of $58.5 million and debt of $80.7 million as at September 30, 2024;
Acquisition of a 6% gold stream (until 225,000 ounces are delivered, and then 3.6% thereafter) by Osisko Bermuda Limited ("Osisko Bermuda") on SolGold plc's ("SolGold") Cascabel copper-gold development project in Ecuador for a total of US$225.0 million, payable upon achieving certain milestones;
Entered into a binding agreement to acquire a 1.8% gross revenue royalty ("GRR") from Tembo Capital Mining Fund II ("Tembo") on Spartan Resources Limited's Dalgaranga Gold Project ("Dalgaranga") in Western Australia for US$44 million, and a 1.35% GRR on additional regional exploration licenses in proximity to Dalgaranga from Tembo for US$6 million;
First delivery of copper received by Osisko Bermuda from Metals Acquisition Limited under the CSA copper stream;
First payment received from Agnico Eagle Mines Ltd. under the Akasaba West 2.5% NSR royalty (partial coverage);
Appointment of Ms. Wendy Louie to the Company's Board of Directors as an Independent Director; and
Declaration of a quarterly dividend of $0.065 per common share paid on October 15, 2024 to shareholders of record as of the close of business on September 30, 2024.
Subsequent to September 30, 2024
Declaration of a quarterly dividend of $0.065 per common share payable on January 15, 2025 to shareholders of record as of the close of business on December 31, 2024;
Osisko added to the Solactive Global Silver Miners Total Return Index; the underlying index that is tracked by the Global X Silver Miners ETF ("SIL"), pursuant to the index's semi-annual ordinary adjustment, effective November 1, 2024; and,
The resignation of Mr. Robert Krcmarov from the Board of Directors in order to assume the role of President & CEO of Hecla Mining Company.
Jason Attew, President & CEO of Osisko commented: "Osisko had a solid third quarter and remains on track to achieve its 2024 revised guidance range of 77,000 to 83,000 GEOs delivered. On the last day of the quarter, Osisko also announced an agreement to purchase a royalty on Spartan's Dalgaranga Gold Project in Western Australia, an asset that checks all of our boxes in terms of near-term production and cash flow, top-tier mining jurisdiction, management quality and significant exploration upside. This accretive transaction is expected to close shortly upon customary approval from Australia's Foreign Investment Review Board, and will provide incremental growth to Osisko's peer-leading GEO delivery growth profile within the next two-to-three years.
Catalysts continued to crystallize for Osisko during the third quarter, most notably first deliveries under the CSA copper stream, first production at G Mining Ventures' Tocantinzinho gold mine, and finally Gold Fields closing its acquisition of Osisko Mining to consolidate 100% of the Windfall gold project. Looking ahead into the next several months, we're still expecting to see improved production at Capstone's Mantos Blancos mine, as well as commissioning and first gold production from the Namdini gold project, both of which will serve as key incremental GEO delivery growth drivers for 2025 and beyond."
Mr. Norman MacDonald, Chair of Osisko's Board of Directors commented: "Rob has been an active and engaged independent member of Osisko's Board for 2 years, and over this period, the Company has benefitted significantly from his dedicated leadership combined with his technical experience. On behalf of the Board, management and the Company's shareholders, I would like to congratulate Rob on his new role as President and CEO of Hecla and wish him all the best in his future endeavors."
Q3 2024 RESULTS CONFERENCE AND WEBCAST CALL DETAILS
Conference Call:
Wednesday, November 6th, 2024 at 5:00 pm ET
Dial-in Numbers: (Option 1)
North American Toll-Free: 1 (800) 717-1738 Local, Montreal: 1 (514) 400-3792 Local, Toronto: 1 (289) 514-5100 Local, New York: 1 (646) 307-1865 Conference ID: 83490
Webcast link: (Option 2)
https://viavid.webcasts.com/starthere.jsp?ei=1691902&tp_key=a7c42fad9d
Replay (available until Friday, December 6th at 11:59 PM ET):
North American Toll-Free: 1 (888) 660-6264 Local, Toronto: 1 (289) 819-1325 Local, New York: 1 (646) 517-3975 Playback Passcode: 83490#
Replay also available on our website at www.osiskogr.com
Qualified Person
The scientific and technical content of this news release has been reviewed and approved by Guy Desharnais, Ph.D., P.Geo., Vice President, Project Evaluation at Osisko Gold Royalties Ltd, who is a "qualified person" as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101").
About Osisko Gold Royalties Ltd
Osisko Gold Royalties Ltd is an intermediate precious metal royalty company which holds a North American focused portfolio of over 185 royalties, streams and precious metal offtakes, including 20 producing assets. Osisko's portfolio is anchored by its cornerstone asset, a 3-5% net smelter return royalty on the Canadian Malartic Complex, home to one of Canada's largest gold mines.
Osisko's head office is located at 1100 Avenue des Canadiens-de-Montréal, Suite 300, Montréal, Québec, H3B 2S2.
For further information, please contact Osisko Gold Royalties Ltd:
Grant Moenting Vice President, Capital Markets Tel: (514) 940-0670 x116 Cell: (365) 275-1954 Email:
Heather Taylor Vice President, Sustainability and Communications Tel: (514) 940-0670 x105 Email:
Notes:
(1)
Gold Equivalent OuncesGEOs are calculated on a quarterly basis and include royalties and streams. Silver ounces and copper tonnes earned from royalty and stream agreements are converted to gold equivalent ounces by multiplying the silver ounces or copper tonnes by the average silver price per ounce or copper price per tonne for the period and dividing by the average gold price per ounce for the period. Diamonds, other metals and cash royalties are converted into gold equivalent ounces by dividing the associated revenue by the average gold price per ounce for the period.
Average Metal Prices and Exchange Rate
Three months ended September 30,
2024
2023
Gold (i)
$2,474
$1,928
Silver (ii)
$29
$24
Copper (iii)
$9,210
$8,356
Exchange rate (US$/Can$) (iv)
1.3641
1.3414
(i)
The London Bullion Market Association's pm price in U.S. dollars per ounce.
(ii)
The London Bullion Market Association's price in U.S. dollars per ounce.
(iii)
The London Metal Exchange's price in U.S. dollars per tonne.
(iv)
Bank of Canada daily rate.
(2)
Three months ended September 30, 2023 ("Q3 2023").
(3)
Non-IFRS MeasuresThe Corporation has included certain performance measures in this press release that do not have any standardized meaning prescribed by IFRS Accounting Standards including cash margin in dollars and in percentage. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS Accounting Standards. As Osisko's operations are primarily focused on precious metals, the Corporation presents cash margins as it believes that certain investors use this information, together with measures determined in accordance with IFRS Accounting Standards, to evaluate the Corporation's performance in comparison to other companies in the precious metals mining industry who present results on a similar basis. However, other companies may calculate these non-IFRS measures differently.
Cash Margin (in thousands of dollars and in percentage of revenues)
Cash margin (in thousands of dollars) represents revenues less cost of sales (excluding depletion). Cash margin (in percentage of revenues) represents the cash margin (in thousands of dollars) divided by revenues.
Three months ended September 30,
Nine months ended September 30,
2024
2023
2024
2023
$
$
$
$
Royalty interests
Revenues
38,472
37,410
129,252
115,911
Less: cost of sales (excluding depletion)
(66
)
(193
)
(316
)
(533
)
Cash margin (in dollars)
38,406
37,217
128,936
115,378
Depletion
(2,763
)
(5,972
)
(13,658
)
(18,430
)
Gross profit
35,643
31,245
115,278
96,948
Stream interests
Revenues
18,783
24,659
53,600
66,245
Less: cost of sales (excluding depletion)
(2,075
)
(4,144
)
(5,884
)
(12,105
)
Cash margin (in dollars)
16,708
20,515
47,716
54,140
Depletion
(6,753
)
(10,922
)
(17,795
)
(24,926
)
Gross profit
9,955
9,593
29,921
29,214
Royalty and stream interests
Total cash margin (in dollars)
55,114
57,732
176,652
169,518
Divided by: total revenues
57,255
62,069
182,852
182,156
Cash margin (in percentage of revenues)
96.3
%
93.0
%
96.6
%
93.1
%
Total, Gross profit
45,598
40,838
145,199
126,162
(4)
Adjusted earnings and adjusted earnings per basic shareAdjusted earnings is defined as: net earnings (loss), adjusted for certain items: foreign exchange gains (losses), impairment charges and reversal related to royalty, stream and other interests, changes in allowance for expected credit losses, write-offs and impairment of investments, gains (losses) on disposal of assets, gains (losses) on investments, share of income (loss) of associates, transaction costs and other items such as non-cash gains (losses), as well as the impact of income taxes on these items. Adjusted earnings per basic share is obtained from the adjusted earnings divided by the weighted average number of common shares outstanding for the period.
Three months ended September 30,
Nine months ended September 30,
2024
2023
2024
2023
(in thousands of dollars, except per share amounts)
$
$
$
$
Net earnings (loss)
18,288
(19,999
)
12,246
18,810
Adjustments:
Impairment of royalty and streams interests
